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Nymex crude oil prices were mixed between small gains and losses during Asian trade this morning after a sustained decline overnight as the markets anticipated that a sluggish U.S. economy will demand less fuel and energy, while warmer weather forecasts too pushed prices lower.

Oil futures at ICE and NYMEX already retreated on Tuesday morning breaching first short-term supports. Economic data released yesterday came in mixed but the disappointing reading of the US consumer confidence weighed on sentiment on financial markets. The technical constellation also put prices under pressure. The RSI dropped below 70% at the WTI and the Brent chart triggering new selling signals. When Gasoil and WTI slid below Monday's lows, and Brent breached the 110 dollars-support, more technical selling orders were generated. Due to the technical profit taking, oil futures sharply declined until late in the evening denting domestic prices in the euro zone, too. This effect will also show in our survey this morning (11.30 a.m.). Only NYMEX Heating Oil and WTI slightly recovered again in the evening. Market participants wanted to avoid too important short positions in these categories ahead of the data on US oil stocks as distillate inventories will presumably show a renewed draw and crude oil stocks in Cushing are to continue retreating with oil being pumped through the southern section of the Keystone pipeline. The API's data, released at 10.30 p.m. last night, came in slightly bearish as the draw in product stocks was not as massive as expected. WTI's late counterreaction made the spread between the two crude oil sorts narrow to less than 8 dollars again.

ICE Gasoil contract for March delivery settled at 925.25 USD on Tuesday. This was -9.00 USD below Monday's settlement. With some 51,300 deals, the traded volume was slightly below average.

Yesterday, the RSI dropped below 70% both at the WTI and the Brent chart triggering a selling signal. Moreover, the lines of the stochastic indicator fell below the 50% marker whilst quotations were retreating, which is also a slightly bearish signal. The selling signal of the RSI was largely spent during the sharp decline at oil markets yesterday afternoon. Still there is a slightly bearish impact and so we assess the technical situation as neutral to bearish this morning. Gasoil is already trying to break below its uptrend whereas Brent and WTI have some leeway down to their supports. In all, technical selling pressure is lasting this morning, with investors' focus turning to the DOE's data, however, which might bring new cues this afternoon.

U.S.

Nymex cooling: Yesterday's profit taking continued this morning causing further losses at ICE. As first supports remained strong, futures have slightly pulled back from their lows, however. The traded volume at NYMEX is on average for this time of day. Market players eye the development at the stock and forex markets and wait for today's economic data.

Forecasts: Crude oil +1.3; Distillates -1.5; Gasoline -1.0 million barrels vs previous week.
API: Crude oil +0.8; Distillates -0.7; Gasoline -0.3 million barrels vs previous week.

Houston (ex-wharf indications 26-2)
380cst $608
180cst $679
MGO $1018

New Orleans (ex-wharf indications 26-2)
380cst $640
180cst $669
MGO $1020

Singapore (delivered indications 26-2)

WTI is bearish with -$0.12. Singapore paper remains bullish with -$4.50 for 180cst and -$4.00 for 380cst for Mar, and for Apr 180 cst -$4.25 and 380cst -$4.05 with MGO contracts being bearish Mar -$0.95 and Apr -$0.92. The cargo market is bearish with 180 cst -$0.87, 380cst +$0.12 and MGO -$0.19.

380cst $618
180cst $632
MGO $945

Fujairah (delivered indications 26-2)

380cst0 $615
180cst $643
MGO $988

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $591
(1.0 %) : $639
180cst: $621
MGO 0.1%S: $ 883